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Schools in more affluent areas across Ontario continue to raise so much money that they bring in almost $200 million more than what the government provides to lower-income communities to try to make up the gap.

An analysis of the province’s education funding formula, released Monday, says the “learning opportunities grant” distributes about $179 per student to schools in needy areas, while fundraising brings in $548 million to boards, or an average of $280 per student.

The learning opportunities grant distributes about $179 per student to schools in needy areas, while fundraising brings in an average of $280 per student. School-generated funds are used to bring in scientists or artists for enrichment programming, purchase extra computers or better gym equipment, for example. (Melissa Renwick / Toronto Star)

“School-based fundraising significantly reverses the impact of the (grant) on school boards’ resources,” says the report commissioned by the Elementary Teachers’ Federation of Ontario to mark the 20th anniversary of drastic changes to how the education system was funded.

It notes that the boards that receive less grant money for needy schools actually bring in more than the $280 average, and those that receive the most in learning opportunity grants, or LOGs, bring in much less than the average.

“Even these numbers radically understate the upside-down equity driven by school-based fundraising … at the school level, the gap between at-risk programming needs and local fundraising potential will inevitably be even starker,” says the report by economist Hugh Mackenzie.

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The provincial funding formula, introduced by the Conservative government back in 1997, not only took more than a billion dollars out of the system, it also took taxing powers away from individual school boards. It continues to come under fire for flaws that unions and parent groups have urged the Liberals to fix.

The Liberal government has poured billions more into education, now spending $23 billion, or $12,107 per student, when adjusted for inflation, the report notes.

Ontario now ranks fifth in Canada in per-student spending.

The report, however, notes much of the additional money has been spent on class size reductions, and full-day kindergarten.

Both of those initiatives have benefitted elementary teachers and created thousands of jobs.

Overall, the report says whether special education, English-as-a-Second-Language students or school maintenance, these areas “have all been underfunded for two decades.”

“We are not surprised by the findings,” said Sam Hammond, president of the Elementary Teachers’ Federation of Ontario — the country’s largest teacher union — in an interview.

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“It’s telling in terms of the compounded problems that have been caused since 1997.”

Despite changes to special education funding, some boards continue to spend millions more than they receive to deliver programming.

“We acknowledge that the Liberals have put money into it … but every year the funding has changed, it has been inadequate,” he said.

“Boards are struggling every year to balance their budgets; they are struggling to get enough resources and enough money into special education programming to support students with special needs.

“And even with changes that the Liberals put in most recently, even under that, there are still boards that lost out on millions of dollars.”

Teachers have been warning about this “for a number of years now,” Hammond added.

“There’s been a consistent decline in the supports and resources with regards to special education programs at the same time as we see increases in the numbers of students requiring those levels of support.”

In June, the government did make a move to address the problem, with Education Minister Mitzie Hunter announcing an extra $219 million into a fund for boards to hire a total of 875 teachers and 1,600 education workers.

Hammond said the Liberals were the biggest critics of the funding formula and promised a full review, which has not been done, and the union is now asking for an evaluation of the funding system every five years.

Hunter said Monday her government, which inherited “an education system in disrepair,” stands by the “significant transformation” and new investments it has made to the funding formula since 2003.

“We already have school fundraising guidelines in place, have just increased the learning opportunities grant and recently concluded a review of special education funding that led to improvements in that funding model,” Hunter said in a statement.

ETFO is also recommending the government increase funding for children with special education needs and mental health issues and hire external reviewers to examine how it allocates money in this area.

The union would also like the province to pitch in more money for counselors, psychologists, social workers and speech therapists, which they say are lacking in the system now and leading to long wait lists.

The York Region Catholic board, however, was averaging $358 per student.

School-generated funds include fundraising events, payments for field trips and cafeteria sales, among other things, and are used to bring in scientists or artists for enrichment programming, purchase extra computers or better gym equipment.

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